FlexiRoam Limited (ASX: FRX) Reports Q2 FY25 Cash Flow Update
Cash Flow Performance
FlexiRoam Limited (ASX: FRX) reported cash receipts of A$3.31 million for the three months ending 31 December 2024, reflecting a decrease of 12.66% compared to the previous quarter. However, this marked a slight year-on-year increase of 2.13% from A$6.96 million in the first half of FY24.
Net cash outflow from operating activities rose to A$642,000, representing a sharp increase of 135.16% quarter-on-quarter. Although administrative expenses decreased overall, specific expenses during the quarter led to an increase in cash outflows. Management is currently reassessing its pricing strategy to address these financial challenges while optimising platform costs.
Marketing and Operational Developments
The company allocated A$194,000 towards software enhancements to enrich marketing analytics and customer management tools. FlexiRoam successfully recorded cash and cash equivalents standing at A$1.23 million at quarter’s end, a significant increase from A$583,000 at the close of Q1 FY25.
Through targeted promotional campaigns, total customer receipts climbed to A$7.11 million, driven by an effective balance between customer retention and acquisition strategies. The ongoing shift towards scalable marketing strategies has shown promising early signs of sustainable growth, thus reducing dependence on high-cost paid media.
Future Outlook and Executive Comments
FlexiRoam’s management is implementing further measures to streamline operations, aiming to enhance profitability through disciplined marketing investments. A proposed rights issue is set to raise approximately A$3.9 million to strengthen working capital.
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